BBA plans to strengthen LIBOR

Measures announced today come as the benchmark has been under increasing stress following the fall-out from the credit crunch. Proposed changes include a tighter scrutiny of contributor banks and the proposed expansion of the membership of LIBOR’s governing body and its panels. The BBA will also take soundings on whether the historically transparent rate-setting mechanism is stigmatising contributors and whether a second rate-fixing process for US dollar LIBOR might be set after the US market opening. BBA chief executive Angela Knight says: "BBA LIBOR has stood the test of time: it...